by
Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC
The stock turnover ratio relationship between cost of good sold during the year or average inventory held during the year.
Raw material consumed / average raw material stock.
This ratio indicate how inventory is used or sold. The high ratio good from the point of view liquidity. And a low ratio point of view indicate inventory is not used or sold or stay in shelf, in the ware house long time.
